Seen as a long-term store of value, Bitcoin (BTC) has mirrored gold's performance in the past. However, this isn’t the case now. While gold reaches new highs, Bitcoin, often dubbed "digital gold," isn’t keeping pace. Gold hit an all-time high of $2,531.60 per ounce on August 20, amid geopolitical tensions in the Middle East and potential interest rate cuts by the Federal Reserve.

In contrast, Bitcoin's price remains 19.8% below its all-time high of $73,750 reached in March 2024. Despite its reputation as a scarce asset, Bitcoin hasn’t attracted the expected safe haven flows. Crypto enthusiasts argue that a "paradigm shift" could enhance Bitcoin’s status as a safe haven, especially after the banking turmoil involving Silicon Valley Bank and Credit Suisse. Despite this, Bitcoin's correlation with equities persists during market stress.

Market dynamics, including the upcoming U.S. presidential election, also influence Bitcoin's performance. With Donald Trump as a more crypto-friendly candidate compared to Kamala Harris, regulatory concerns may impact Bitcoin's appeal.

BlackRock CEO Larry Fink, once critical of Bitcoin, recently praised it for "digitalizing gold," following BlackRock's application for a Bitcoin ETF. This move has attracted institutional interest, yet Bitcoin's journey to becoming "digital gold" remains incomplete.

This week is crucial for investors, with the Federal Reserve’s annual Jackson Hole gathering of central bankers and economists taking place this Friday. Chairman Jerome Powell's upcoming speech could potentially impact interest rate expectations.